Trust Fund Recovery Litigation

Trust Fund Recovery Litigation refers to a legal process where the Internal Revenue Service (IRS) seeks to recover unpaid payroll taxes from individuals responsible for withholding these taxes from employee wages. When a business fails to pay these taxes, the IRS can hold certain individuals, like business owners or financial officers, personally liable. This litigation involves the IRS proving that these individuals willfully neglected their duty to pay, potentially leading to personal financial consequences. It underscores the serious responsibility companies have in managing their employees' tax withholdings.